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Deutsche Finance Group Boston Life Science Investment Success

Bloomberg Markets •
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In February 2022, the Deutsche Finance Group successfully exited its first Lab-Office club deal in Boston, the "Deutsche Finance Investment Fund 15 – Club-Deal Boston I," nine months ahead of schedule with a total payout of 140.1% above plan. The fund invested in a lab-office project in the U.S. science hub, combining lab and office spaces for life science and biotech companies. After completion and full leasing, the property was sold to a leading institutional investor in late 2021.

Hardy Godl, managing director of Deutsche Finance Asset Management, highlighted the early exit as proof of the asset class's potential. Starting March 2022, another club deal for lab-office investments in Boston will be offered to private investors. The group manages over 9.6 billion euros in assets for more than 40,000 private investors and 20 investment funds.

Dr. Sven Neubauer, executive partner, noted that institutional investors increasingly focus on ESG criteria. Deutsche Finance cooperates with Siemens Smart Infrastructure to enhance building efficiency. In Boston, the group is developing "Boynton Yards," an innovative life science campus near Harvard, MIT, and Tufts. The lab-office market in the region is expanding with near-zero vacancy.

Additionally, in January 2022, Deutsche Finance sold its Danish student-housing platform "Blaekhus" to Patrizia AG for 314 million euros. The portfolio included seven locations and 1,186 apartments near universities, demonstrating resilience against market fluctuations.